INDICTMENTS CHARGE DEFENSE CONTRACTOR BRENT WILKES WITH CORRUPTION INVOLVING FORMER CIA EXECUTIVE DIRECTOR KYLE "DUSTY" FOGGO AND FORMER CONGRESSMAN RANDY "DUKE" CUNNINGHAM
SAN DIEGO - A federal grand jury handed up two indictments stemming from its probe of San Diego defense contractor Brent R. Wilkes, who is accused of corruption involving former Congressman Randall "Duke" Cunningham and former CIA Executive Director Kyle "Dusty" Foggo, U.S. Attorney Carol C. Lam announced today. The first indictment charges Wilkes with providing more than $700,000 to Cunningham in return for the former Congressman betraying his public office by influencing the appropriation of funds and the execution of government contracts in ways that would benefit ADCS, Inc; Wilkes's company in Poway, California.
(Media-Newswire.com) - SAN DIEGO - A federal grand jury handed up two indictments stemming from its probe of San Diego defense contractor Brent R. Wilkes, who is accused of corruption involving former Congressman Randall "Duke" Cunningham and former CIA Executive Director Kyle "Dusty" Foggo, U.S. Attorney Carol C. Lam announced today.
The first indictment charges Wilkes with providing more than $700,000 to Cunningham in return for the former Congressman betraying his public office by influencing the appropriation of funds and the execution of government contracts in ways that would benefit ADCS, Inc; Wilkes's company in Poway, California. This indictment also charges New York-based mortgage banker John T. Michael with obstructing justice by attempting to influence and impede a federal grand jury investigation by, among other things, providing false and misleading testimony regarding Wilkes's role in paying off the $500,000 second mortgage on Cunningham's home in Rancho Santa Fe, California.
Wilkes allegedly paid the bribes to Cunningham in the form of cash, checks, meals, limousine service, corporate jet travel, lodging, furnishings, boats and marine equipment, prostitution services, vacations, and entertainment, according to Assistant U.S. Attorneys Sanjay Bhandari, Jason A. Forge and Phillip L.B. Halpern, who are prosecuting the cases. Cunningham failed to disclose any of these benefits on the financial disclosure statements that he filed with the U.S. House of Representatives. In return for receiving these bribes, the indictment alleges that Cunningham used his public office for nearly a decade to influence the awarding of more than $100 million in defense contracts to Wilkes.
The second indictment charges former CIA Executive Director Kyle "Dusty" Foggo and Wilkes with conspiring to defraud the United States and its citizens of the right to defendant Foggo's honest services. Among other things, the indictment alleges that Foggo used his seniority and influence within the CIA to influence the awarding of contracts to his life-long friend, Brent Wilkes. The indictment alleges that in order to conceal Foggo's conflict of interest and corrupt intent, Wilkes and Foggo carried out their scheme by using shell companies and straw men to conceal Wilkes' role and interest, and to launder the proceeds of their fraud.
According to the indictments, Foggo misrepresented and concealed material facts from CIA officials, including his knowledge of, and role in, attempting to steer contracts to Wilkes, and his receipt of numerous benefits from Wilkes, including tens of thousands of dollars in various meals, gifts, and vacations, and a standing offer of a senior executive position with Wilkes's company, ADCS, Inc. None of these benefits were disclosed by Foggo on the financial disclosure statements that Foggo filed with the CIA. The indictment further alleges that Foggo not only used his position to influence the awarding of CIA contracts, but also used his position to assist Wilkes in obtaining money from other CIA contractors.
"High government positions and powerful connections should not be tickets to corrupt self-enrichment," stated U.S. Attorney Lam, "the public trust is not for sale."
This case is the result of an investigation by the Central Intelligence Agency ( CIA ) - Office of Inspector General, Defense Criminal Investigative Service ( DCIS ), Federal Bureau of Investigation ( FBI ), and Internal Revenue Service - Criminal Investigation Division ( IRS-CI ). The United States Attorney's Office for the Southern District of California also recognizes the assistance provided by the United States Attorney's Offices for the District of Columbia, the Eastern District of New York, and the Eastern District of Virginia.
The investigation is continuing.
For Further Information, Contact: Assistant U.S. Attorney Neville S. Hedley ( 619 )557-7459
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